Identifiable Intangible Assets, Net and Goodwill

12 Months Ended

Dec. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Identifiable Intangible Assets, Net and Goodwill

A. Identifiable Intangible Assets


The following summarizes the components of Identifiable intangible assets:
	As of December 31, 2025						As of December 31, 2024
(MILLIONS)	Gross Carrying Amount		Accumulated Amortization		Identifiable Intangible Assets, Net		Gross Carrying Amount		Accumulated Amortization		Identifiable Intangible Assets, Net
Finite-lived intangible assets
Developed technology rights(a)	$	100,630	$	(70,172)	$	30,458	$	99,397	$	(65,044)	$	34,353
Brands(b)	1,035		(1,035)		—		1,277		(992)		285
Licensing agreements and other	2,341		(1,289)		1,052		2,724		(1,513)		1,210
	104,006		(72,496)		31,510		103,397		(67,549)		35,848
Indefinite-lived intangible assets

IPR&D(c)	21,760				21,760		18,893				18,893

Licensing agreements and other(d)	460				460		670				670
	22,221				22,221		19,563				19,563
Identifiable intangible assets	$	126,227	$	(72,496)	$	53,731	$	122,961	$	(67,549)	$	55,411

(a)The increase in the gross carrying amount primarily reflect the transfer of $600 million and $590 million from IPR&D to developed technology rights for Padcev and talazoparib (Talzenna), respectively, as well as the impact of foreign exchange, partially offset by impairments of $560 million (see Note 4).

(b)The decrease in the gross carrying amount reflects an impairment of $240 million (see Note 4).

(c)The increase in the gross carrying amount primarily reflects $8.0 billion for the acquisition of Metsera (see Note 2A), partially offset by impairments of $3.9 billion (see Note 4) and the transfers to developed technology rights noted above.

(d)The decrease in the gross carrying amount reflects an impairment of $210 million (see Note 4).

Developed Technology Rights––Developed technology rights represent the cost for developed technology acquired from third parties and can include the right to develop, use, market, sell and/or offer for sale the product, compounds and intellectual property that we have acquired with respect to products, compounds and/or processes that have been completed. We possess a well-diversified portfolio of hundreds of developed technology rights across therapeutic categories, representing our commercialized products. The significant components of developed

technology rights are the following: Nurtec ODT/Vydura, Padcev, Adcetris, Velsipity, Xtandi, Braftovi/Mektovi and Talzenna. Also included in this category are the post-approval milestone payments made under our alliance agreements for certain prescription pharmaceutical products.

IPR&D––IPR&D assets represent the acquisition date fair value (less impairments) of R&D assets acquired through business combinations that have not yet received regulatory approval in a major market which could include both new investigational products and additional indications for in-line products. The significant components of IPR&D are sigvotatug vedotin, MET-097i+MET-233i combination, MET-097i monotherapy, disitamab vedotin and osivelotor. IPR&D assets are required to be classified as indefinite-lived assets until the successful completion or the abandonment of the associated R&D effort. Accordingly, during the development period after the date of acquisition, these assets are not amortized until approval is obtained in a major market, typically either the U.S. or the EU, or in a series of other countries, subject to certain specified conditions and management judgment. At that time, we will determine the useful life of the asset, reclassify it out of IPR&D and begin amortization. If the associated R&D effort is abandoned, the related IPR&D assets will be written-off, and we will record an impairment charge. IPR&D assets are high-risk assets, given the uncertain nature of R&D. Accordingly, IPR&D assets may become impaired and/or be written-off in the future.

Licensing Agreements––Licensing agreements for developed technology and for technology in development primarily relate to out-licensing arrangements acquired from third parties, including from acquisitions. These assets represent the cost for the license, where we acquired the right to future royalties and/or milestones upon development or commercialization by the licensing partners. Accordingly, during the development period after the date of acquisition, each of these assets is classified as indefinite-lived intangible assets and will not be amortized until approval is obtained in a major market. At that time we will determine the useful life of the asset, reclassify the respective licensing arrangement asset to finite-lived intangible asset and begin amortization. If the development effort is abandoned, the related licensing asset will be written-off, and we will record an impairment charge.

Amortization––The weighted-average life for our total finite-lived intangible assets and for the largest component, developed technology rights, is approximately 10 years.


The following provides the expected annual amortization expense:
(MILLIONS)	2026		2027		2028		2029		2030
Amortization expense	$	4,677	$	4,087	$	3,723	$	2,775	$	2,732

B. Goodwill


The following summarizes the changes in the carrying amount of Goodwill(a):
(MILLIONS)	2025		2024
Balance, beginning	$	68,527	$	67,783
Additions(b)	2,163		1,022
Impact of foreign exchange and other	574		(278)
Balance, ending	$	71,264	$	68,527

(a)As a result of the organizational changes to the commercial structure within the Biopharma operating segment effective in the first quarter of 2025 (see Note 17A), our goodwill was reallocated among impacted reporting units. We completed the re-allocation during the first quarter of 2025 and concluded that none of our goodwill was impaired. All goodwill continues to be assigned within the Biopharma reportable segment.

(b)Additions in 2025 primarily represent our acquisition of Metsera and in 2024 primarily represent measurement period adjustments related to our acquisition of Seagen (see Note 2A).